Canada and China have taken a significant step towards improving their relations, with Chinese President Xi Jinping welcoming a “turnaround” in ties between the two nations. This development comes after a meeting with Canadian Prime Minister Mark Carney in Beijing, marking the first direct talks between a Chinese and a Canadian leader in eight years. The meeting is particularly notable given the tensions between Ottawa and Washington, which have prompted Canada to seek a rapprochement with Beijing.
During his campaign in April 2025, Prime Minister Carney identified China as the number one security threat to Canada on the global stage. However, the stance of US President Donald Trump, who has suggested that Canada could become the 51st US state and has imposed hefty tariffs on the country, has led to a re-evaluation of Canada’s position. Carney has now emphasized the potential for cooperation with China, suggesting that agriculture, energy, and finance could form the foundation of a new strategic partnership between the two countries.
The initial deal signed during Carney’s visit to Beijing will reduce tariffs on electric vehicles and canola seeds, with further steps planned to relax trade barriers. Canada has agreed to allow China to export up to 49,000 electric vehicles at a significantly reduced tariff of 6.1%, down from the 100% duty imposed in 2023. This move is seen as a positive step towards resuming cooperation and improving economic ties between the two nations.
Relations between Canada and China had deteriorated in 2018 following the arrest of a Huawei executive and the subsequent detention of two Canadian citizens on espionage charges. The imposition of reciprocal tariffs and accusations of election meddling further strained ties. However, the recent agreement and the expressed willingness to cooperate signal a potential shift in the relationship.
Prime Minister Carney has stated that Canada aims to double its non-US exports by 2035 to reduce its dependence on Washington, which remains its main trading partner. The improving ties with China are seen as a key component of this strategy, with both countries seeking to expand their trade and economic cooperation. As Canada navigates its relationships with major world powers, the development of its ties with China will be closely watched, given the potential implications for global trade and diplomacy.
